<ul><li>Margin trading facility (MTF) exposures have decreased to ₹71,000 crore from their peak, but could rise to ₹1 lakh crore with a rebound in investor confidence.</li><li>Implementation of regulatory measures led to a decline in trading activity in index options between December 2024 and March 2025.</li><li>Average daily premium turnover in the mentioned period decreased by 18%, and the number of options contracts traded fell by 60%.</li><li>Trading activity in the cash segment decreased in Q4FY25, impacting broking firms' revenue, but the introduction of MSEI-SX40 weekly index options is expected to mitigate the impact.</li></ul>

Index options trading show signs of stabilisation as regulatory tightening cools: ICRA

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